Appaloosa's Tepper: Fed inaction 'favorable environment' for stocks

David Tepper, founder and president of Appaloosa Management, told CNBC on Thursday the Federal Reserve's decision not to taper its $85-billion-a-month bond-buying program is a "pretty favorable environment for the markets."

"The Feds non-taper and forward guidance should give a clear message of what the Fed wants. They are not worried about inflation in the next few years and want growth first, growth second, and growth third. With the stabilization of Europe, the apparent pickup in China (note higher dry bulk index) and a U.S. economy still on reasonable footing, despite a slight slowdown in housing the Feds apparent heavy leaning to a growth policy should lead to a pretty favorable environment for the markets."

Back in May on CNBC's "Squawk Box." Tepper said: "There better be a true [Fed] taper or else you might be back into the last half of 1999." At the time, he added, "So like guys that are short, they better have a shovel to get themselves out of the grave."